Options Question

Discussion in 'Options' started by jwecme, Aug 14, 2008.

  1. jwecme


    Does anyone know what time period is the most commonly use when calculating volatility in an option for commodities. Do they use more than 1 time period and weight the most recent more heavily or is it just an avreage volatility over say 12 months.

    Hope Someone can help
  2. MTE


    Implied volatility is calculated from market prices. As for the expected future volatility, well, that's up to each individual trader to determine and there's no uniform calculation.